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Monday, January 13, 2020

Recent Buy CVS

Nice to get the first buy of 2020 on the board with 3 shares of CVS at $72.50 per share. Even though CVS has frozen its dividend there is a lot that I like about it. The partnership with Target gives them 1,642 pharmacy in high traffic areas. . The Aetna purchase will make them far more efficient at keeping costs down long term. Their payout ratio is just 28.44 percent for a 2.73 dividend. So there is plenty of room to grow their dividend in the future.

Disclosure:

Long CVS

Disclaimer:
Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Friday, January 3, 2020

Goals for 2020

As 2020 starts off it's that time to think of my short term goals for the new year. The decision to have a third baby seedling this past year has delayed what was supposed to be a year to ramp up investing. I currently have 18 months of two children in full time daycare. Once the second child hits kindergarten, it will unlock more money to invest. Until that time our family will continue to tread water. That said I'm blessed to continue to be able to make investment goals without skimping on childcare.

Goal 1: Average more than $170 per month of deposits my Robinhood Account without reducing other investments. This might not seem like much. But with well over 40k worth of childcare expenses alone, a pension payment, and a separate Roth IRA. There really isn't a lot left to invest. Last year was spent without a baby for 3/4ths of the year. So finding an extra $10 per month to invest in my Dividend Growth Investing account will require some frugality. But I keep reading that it's not where you invest but how much. So I will continue to look for ways to increase my savings rate so that I can meet my goals and my families long term requirement goals.


Goal 2: Earn $500 in dividends for 2020. With $457.12 in forward dividends and undoubtedly some dividend increases in the future this is a very modest goal. But in a year when dividends are tight I will take it some progress. Last year I earned $381.56 in dividends, so breaking the $500 is significant one year progress in a tight budget year.

Goal 3: Double the number of holdings of $1,000 or more to 4. Currently I only have two holdings over $1k, TGT and O.  I value how diverse my tiny portfolio is, however, I would like to make an effort to continue to build upon some of my existing positions.

All and all 2020 should be a year of modest movement for me. I will be continuing to tread water but in the right direction.

Disclosure: Long TGT and O 

Disclaimer:
Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.


Saturday, December 28, 2019

What progress looks like for a small time investor

When I opened my Robinhood account I knew nothing about investing and had no money. Which I figured was a perfect combination. Why not make my mistakes and learn how to invest before I had much to lose? I started out making deposits of $30 per month. My first order was a single share of GE at $29.49 (talk about misfiring) on May 23rd of 2016.

Fast forward 3 years and I was more cash strapped than ever. My third child was born in September, I have a mortgage and finally went on some vacations with the family. Yet I was able to average $160.44 per month. Or 1925.26 for the year. In addition to that, I got an extra $381.92 working for me in dividends.

How I got to $160.44 was pretty messy. I made 36 separate deposits. When you blog and set a goal you find a way to squeeze money you don't have. I tried to make a regular $100 per month deposit but the truth is with the added costs, I didn't always have that money. Especially since I also have a ROTH IRA and a pension payment. I relied on found money like rewards money on my credit card that I always pay off on time. Sometimes I would get a mileage reimbursement at work and deposit that as found money. Other times I found myself a few dollars short of being able to buy an extra share, and would squeeze a small deposit. The point is a few dollars here, a few bucks there add up.

Blogging has kept me disciplined and wanting to find more money to reach my goals. Part of the reason I went back and tracked my deposits into this account was to help drive next year's goals. I'm still deciding on my 2020 goals,  but I guarantee one will be related to increasing my investment.

December Dividends

Another month, another year in the books. This December, 19 companies paid me $48.63 in dividends. That's a dinner for two at a chain restaurant. That is a 41.49 percent Year over year growth from last year. Below is a list of companies that paid me.



BAC           $1.80
D                 $2.75
GM             $1.14
DUK           $3.78
CMP           $3.60
MCD          $1.25
FLO           $1.90
O                $3.86
MMM        $2.88
ADM          $2.45
TGT            $6.60
EMR          $2.50
JNJ             $1.90
XOM          $2.61
AMGN       $1.45
DFS           $2.20
UL             $0.89
HBI           $1.50
WFC         $3.57

Disclosure Long BAC, D, GM, DUK, CMP, MCD, FLO, O, MMM, ADM, TGT, EMR, JNJ, XOM, AMGN, DFS, UL, HBI, WFC.




Disclaimer:

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Tuesday, December 24, 2019

Goal Review for 2019

Financially I'm really happy with 2019. My wife and I welcomed a third child into the world, and I was able to continue saving without eating canned beans for dinner. Going in I knew that both 2019 and 2020 were going to be treading water years in terms of investing. But it turned out a little better than expected. Let's review my 2019 goals.

The first goal was my reach goal which was to earn $400 in dividends for 2019. I started the year with less than $8,500 in my dividend portfolio. I was cash strapped with the new baby. I came up short, but go closer than I thought. At the end of the year I will have earned $381.55. So while goal No. 1 is a fail I will take it.

My second goal was a $10,500 dividend portfolio. This was a modest goal to begin with and was helped by the market. I had earned 273.54 the previous year in dividends so I knew that even with a flat market, I should crack my goal with only less than $1,700 in purchases. This was less than $142 a month in deposits. I was not expecting my portfolio to be sitting at $13,614.46 which was an increase of over $5,000.

Goal number three had nothing to do with this portfolio, and everything to deal with security. In July of 2018 we took on a Mortgage when we purchased our first house. We bought an old house. And our Joint Savings was less than 10k for the first time in a while. This was an indirect threat to all of my investment accounts, but especially my dividend account since it isn't a retirement account. If we were to ever exhaust our savings, this would be the next account we would tap into. We were able to cross that 10k barrier and add a little more of a cushion. I feel much more secure knowing we have that room to breathe going into next year. Now if something unexpected were to happen and we needed a major repair, we wouldn't deplete our savings. 


Overall 2019 was a success. I will reflect on the success of this past year and in considering my goals for the 2019 school year.




Friday, December 20, 2019

Recent Buy XOM

Yesterday I doubled my position in XOM buying 3 shares at $69.40 per share.

This was a straight value move. Due to low oil prices and other challenges XOM is hovering around 5 year lows. The dividend has increased for 36 straight years and his hovering around 5 percent. It is worth a small position. This is my last buy of 2019. 


Disclosure:
Long XOM


Disclaimer

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Sunday, December 1, 2019

Hidden Wealth Can Explain Choices

When my wife and I decided to have a third child, I got a lot of unsolicited comments and advice. The most common by far was trying for the boy. The next most popular comment was usually something about the costs of children. For me I always thought about the daycare costs that was the present cost, that's where we are struggling with childcare costs. Almost inevitably the conversation steered towards how expensive college has become. Some people explained that this was an obstacle to them having another child. The fear they could never retire, not wanting to saddle their current children with college loans. A fact I've almost never share, is that's a smaller concern for us.

As I've written in previous posts, college is taken care of for our older two thanks to a generous 529 gift from my mom, after she came into a windfall. The third child has a decent start since I started a 529 for my oldest 6 years before she was born and transferred it over.

What others don't always know is that my wife makes a very good salary as well. That we have gotten a significant, but not crazy amount of help buying our first house, replacing our car, etc.

Without this support the third child would be unthinkable. We wouldn't be able to afford the town we live in, we probably wouldn't be homeowners yet. I think it speaks margins about the wealth inequality in this country. We are are two hardworking people in the top quintile of salaries for our state. We are both more than 15 years out of undergrad. Yet without help a middle class lifestyle would be out of the realm of possibility for most. Recently a family friend brought her daughters to play with our girls. She mentioned casually that she was going to Disney World. We have yet to go. We had mentioned we were looking to go. She warned me about the price. For us the newborn is a greater obstacle than the price.

These are the types of things that often aren't discussed. Now offsetting a lot of that privilege is also costs of college, expensive graduate degrees. The fact that my salary was significantly lower until 3 years ago, childcare costs, that much of the support we have gotten came over the age of 35. This speaks to the power of time. If we had gotten the help younger and were of proper maturity, we would be in a stronger position.

But I mention this because people tend to judge people by what they think they should be able to afford. When it comes to finances there are often a lot of hidden variables.

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Recent Buy CVS

Nice to get the first buy of 2020 on the board with 3 shares of CVS at $72.50 per share. Even though CVS has frozen its dividend there is a ...